EconStor Collection:http://hdl.handle.net/10419/44244
Tue, 26 Sep 2017 20:17:51 GMT2017-09-26T20:17:51ZEconStor Collection:https://econstor.eu:443/retrieve/56951/ITS.PNGhttp://hdl.handle.net/10419/44244
The transformation of household expenditure from offline to online: The case of South Koreahttp://hdl.handle.net/10419/44329
Title: The transformation of household expenditure from offline to online: The case of South Korea
Authors: Lee, Dong Hee; Lee, Duk Hee
Abstract: Using longitudinal time-series data, this paper analyzes the causes of the recent sharp increase in household expenditure on telecommunications in South Korea with a linear approximate almost ideal demand system (LA/AIDS) model. The main results are as follows. First, Korean household demand for telecommunications is income elastic and price inelastic following structural changes associated with the rapid diffusion of mobile phones and the Internet during 1998-2007. Second, following these structural changes, telecommunications have become substitutes for books and printed matter and culture & recreational durable goods and they complement cultural & recreational services and private education. This suggests that the pattern of household expenditure has changed from offline to online, and this helps explain the increase in the price elasticity and the expenditure on telecommunications in Korea. While the increase in telecommunications expenditure is a natural phenomenon representing structural changes to the information society, the increase may also cause a delay in the diffusion of new services and broaden the digital divide. Consequently, this paper provides some implications for planning a more desirable and forward-looking policy to prepare for the future information society.Fri, 01 Jan 2010 00:00:00 GMThttp://hdl.handle.net/10419/443292010-01-01T00:00:00ZMeasuring Network Effects in Mobile Telecommunications Markets with Stated‐Preference Valuation Methodshttp://hdl.handle.net/10419/44318
Title: Measuring Network Effects in Mobile Telecommunications Markets with Stated‐Preference Valuation Methods
Authors: Czajkowski, Mikolaj; Sobolewski, Maciej
Abstract: This paper demonstrates how stated-preference methods can be applied to modeling consumers' preferences in the field of mobile telecommunications, and to measuring and the valuation of network effects. We illustrate this with a case study of mobile phone operators in Poland. We utilize the Choice Experiment method and present the respondents with hypothetical choices of mobile phone operators, while explicitly controlling for network effects in the form of other users in the same network. Based on the hypothetical choices consumers make we construct a conditional random parameters multinomial logit model to analyze their preferences. This approach allows us to calculate welfare effects associated with alternatives, as well as marginal rates of substitution (and hence implicit prices) of the attributes used to describe the choices, such as operator brand and distribution of family and friends between available mobile networks. The latter constitutes a network effect as consumer's utility is influenced by the number (or ratio) of members of his or her family, friends and other users subscribed to the same operator. Our results confirm the existence of a strong network effect, which is related to the size of the social network group a particular subscriber belongs to, rather than the absolute size of the mobile operator's customer base. We observe that there are two sources of this 'gross' network effect - pecuniary (arising from possible price discounts for on-net calls) and non-pecuniary, and demonstrate a way to disaggregate them. In addition, we find that brand perception and brand loyalty are important determinants of operator choice. Finally, through the application of a non-market valuation method we are able to calculate monetary values of the network effect and brand loyalty, and both turn out to be relatively high. The results might be of a particular interest to mobile phone operators and regulatory authorities - we find that the capacity for vigorous price competition between mobile operators is limited due to significant non-price barriers which mitigate subscribers' mobility in the market. We demonstrate a way to measure these effects in monetary terms based on modeling of consumer preferences.Fri, 01 Jan 2010 00:00:00 GMThttp://hdl.handle.net/10419/443182010-01-01T00:00:00ZAssessment of First Comer Advantages and Network Effects; the Case of Turkish GSM Markethttp://hdl.handle.net/10419/44317
Title: Assessment of First Comer Advantages and Network Effects; the Case of Turkish GSM Market
Authors: Tözer, Ayhan
Abstract: First comer advantages and network effects are frequently stated as among the most important determinants of market structures and this is particularly relevant for network economies including telecommunications markets. Connected to this, regulatory tools such as number portability have frequently been used to reduce market imperfections resulting from these effects. Within this context, this paper aims to analyze the role of these factors in creating the current market structure of Turkish GSM sector. By examining relevant data such as development of market shares in a historical perspective and by making use of consumer surveys, it is concluded that the dominant operator has benefited from being first comer in the market and established a stable market share (power) due to network effects that are used by this firm deliberately to entrench its position especially in the form of switching costs, scale economies, brand image and tariff (on-net vs. off-net pricing) differentiation; however, it is also observed that introduction of number portability lead to reduction in switching costs, increasing market competition.Fri, 01 Jan 2010 00:00:00 GMThttp://hdl.handle.net/10419/443172010-01-01T00:00:00ZModelling the impact of Next Generation Access (NGA)
on voice termination costhttp://hdl.handle.net/10419/44320
Title: Modelling the impact of Next Generation Access (NGA)
on voice termination cost
Authors: Jay, Stephan; Plueckebaum, Thomas; Ilic, Dragan
Abstract: Termination of a telephone call can only be realized by the network operator of the receiving party. For this reason, the markets for fixed and mobile call termination are regulated ex-ante including price control. To determine the costs of call termination the current regulatory regime considers only those parts of the network where customers compete for jointly used resources (mainly bandwidth). Therefore, the critical border is the "demarcation point" between the end customer dedicated access network and the aggregation network where customers compete for bandwidth. In addition to the extent of the overall network cost to be considered (depending on the location of the demarcation point) the traffic share of the voice termination service (which determines how much of the relevant cost is borne by voice termination) compared to all the other services sharing the same NGN/ NGA network needs to be taken into account. We analyse the cost effects with a cost model, which considers the part of the access network from the MPoP to the demarcation point, where the dedicated (access) network begins, in detail. This allows us to compare the impact of different demarcation points and service scenarios on the level of voice termination rates for three NGA architectures (FTTH/P2P, FTTH/PON and FTTC). We considered double and triple play service packages and ran sensitivities on data usage. In addition, we calculated termination cost for three different demarcation point locations in the case of FTTH/PON.Fri, 01 Jan 2010 00:00:00 GMThttp://hdl.handle.net/10419/443202010-01-01T00:00:00Z